Innovation is the shiny object every organizational leader wants to wave around.

But what happens when leaders confuse technological progress with cultural progress?

Case in point: AT&T’s CEO, John Stankey. His 2,500-word memo recently went viral, not for its vision of the future but for its conditions of belonging. The message to employees was clear:

• You’ll get tools, structure, and opportunity.
• But don’t expect loyalty, flexibility, or advancement without constant proof of value.
• And if that doesn’t work for you, maybe you’re in the wrong place.

This directive signals a bigger problem... some leaders are betting they can adopt artificial intelligence while ignoring the real intelligence that drives culture. The people.

The Employee's Point of View

What leaders say and what employees hear are rarely the same thing. In this case, the translation sounds more like:

• “You’re replaceable.”
• “Your loyalty isn’t valued.”
• “Don’t expect growth unless it serves the bottom line.”

That gap between leadership intent and employee perception is where trust erodes and where culture cracks begin to show.

When that erosion happens, productivity isn’t the first thing to go. The employee's commitment is. Employees may still clock in, but they stop showing up with energy, creativity, or initiative. Instead of bringing their best ideas forward, they protect themselves, play it safe, and keep their heads down. Over time, that defensive posture kills innovation far faster than any competitor ever could.

AI Done Right

AI can absolutely help organizations succeed, but only if used the right way. Otherwise, it becomes another shiny distraction that papers over a toxic foundation.

Here’s an easy way to remember the good use of AI:

A.I. = Augment Integrity

To augment integrity means leaders use Artificial Intelligence in ways that strengthen their values and make good on their promises to employees. These leaders use technology to reinforce trust, amplify transparency, and create consistency between words and actions.

When leaders use AI to augment integrity, not replace it, everyone wins. That means:

• Transparency: using AI to clarify, not obscure. For example, sharing how AI-driven decisions are made rather than hiding behind algorithms.
• Trust: applying AI to reduce bias, not reinforce it. Think fairer hiring practices, not faceless screening.
• Time: freeing human capital to focus on creativity, strategy, and relationships, instead of drowning in repetitive tasks.
• Consistency: ensuring AI tools reflect the same standards and ethics leaders claim to uphold in person.

AI should lift up human potential, not push it out of the room.

What Leaders Should Do Instead

So what does it look like to truly augment integrity in practice? Here are a few actions leaders can take:

• Use AI to automate routine tasks → reinvest the saved time into mentoring and coaching.
• Analyze data trends → but always pair it with human judgment before making decisions.
• Deploy AI-driven feedback surveys → but follow through with real conversations and action.
• Apply AI insights → but ensure they align with stated organizational values and culture commitments.

The Future of Work Demands Both AI and Human Connection

The truth is, culture isn’t dictated by memos or tech adoption. It’s shaped by how leaders model values, measure what matters, and make room for belonging.

Yes, AI is transforming industries. But top talent isn’t sticking around just for innovation. They’re choosing cohesive organizations where they feel a sense of belonging, value, and mutual commitment.

Now I ask you: Is your organization using AI to augment integrity... or just to mask a culture problem? Because leaders can’t automate trust. They can’t outsource respect. And leaders definitely can’t AI their way out of a toxic culture.

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For more insight on this topic, please refer to these blog posts:

• Don’t Punish the Many for the Actions of the Few
• Now, what do I do?
• The New Rules of Team Cohesion and Innovation

Interested in reading more from Dr. Troy Hall? Check out my books available for purchase on Amazon.